Natural Gas extends rally on weather outlook

Natural Gas extended a rally in the domestic and overseas market on Wednesday as forecasts for warmer weather in the US boosted the demand outlook for the fuel that is used in firing up power plants as demand for air conditioning rises at offices and homes.Latest weather forecasting models called for warmer-than-normal temperatures across many regions, including the east, central and southern parts of the US after August 20 and until the end of the month.

 

About 49 5% of US households use natural gas for cooling purposes.
 

All eyes are on Thursday’s storage data which may show an injection of 50 billion cubic feet in the week ended August 7, 2015, lower than the year ago build of 79 billion cubic feet.However, total storage levels at 2.912 trillion cubic feet are 22.5 per cent above year ago levels and 2.2 per cent higher than the five-year average, a sign that the market remains more than adequately supplied, trimming gains in the fuel. At the MCX, Natural Gas futures for August 2015 contract closed at Rs 183 per 1 kg, up by 0.49 per cent after opening at Rs 182, against the previous closing price of Rs 182.10. It touched the intra-day high of Rs 183.70 till the closing.

 

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WEEKLY COMMODITY REPORT 22 DEC 2014

Precious Metals

D A I L Y B U Z Z

GOLD

Gold prices fell by another Rs 25 to Rs 27,225 per ten grams at the bullion market in the national capital on Friday due to slackened demand from jewellers and retailers amid a weak trend overseas. Silver also declined by Rs 100 to Rs 36,600 per kg on reduced offtake by industrial units and coin makers. Traders said apart from subdued demand from jewellers and retailers at prevailing levels, a weak trend in global markets mainly kept gold prices lower. Globally, gold eased by 0.16 per cent to $1,196 an ounce in London on Friday. In Delhi, gold of 99.9 and 99.5 per cent purity shed another Rs 25 each to Rs 27,225 and Rs 27,025 per ten grams, respectively. It had lost Rs 50 on Thursday. Sovereign, however, continued to trade at last level of Rs 23,700 per piece of eight grams. Silver ready also fell by Rs 100 to Rs 36,600 per kg and we weekly-based delivery by Rs 190 to Rs 36,610 per kg. Silver coins plunged by Rs 1,000 to Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces. 

Energy

D A I L Y B U Z Z

CRUDEOIL

Global crude prices fell more than $1 a barrel on Thursday, retreating from a short-covering charged rally as traders bet the market had not shaken off a six-month long rout on oversupply concerns. Traders also cited a Bloomberg report that a port workers' union in Nigeria had ended its strike, potentially allowing crude oil shipments to resume out of the country. Brent crude jumped 3 per cent to above $63 a barrel on Thursday, extending a rebound from five-year lows this week as oil's six-month price rout forced more energy firms to cut investments in new production. Oil this week slumped as low as $58.50 and has almost halved since June as fast- growing US shale output overwhelms demand, with losses accelerating after producer groupOPEC decided not to cut output at its meeting last month.

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